Jun 1, 2016 - Cash-rich Indian companies take buyback route to reward investors

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Sree Vijaykumar From the Editor's Desk Ok, so 2 stories for today. Entrepreneurs live in their businesses so much that it often leads to identity crises, especially when things go bad. This article examines this issue with some examples. Founders are advised to read it for empathy. The second story is about how boards with women are less likely to try to buy other companies, and when they do, the deals are smaller. And this is a good thing! Full story here. Cash-rich Indian companies take buyback route to reward investors Buybacks have started gaining momentum after the 10% tax on investors earning dividends above Rs 10 lakh came into effect on April 1. Five themes for a portfolio to bet on a bounceback in the economy If global cues remain stable and monsoon is normal this time around, the economy should do well and should be able to hit the 8% mark sooner than expected. Don't write off payments banks The withdrawal of three licencees should not be read as a doomsday omen for the idea and underlying rationale Govt wants cash-rich CPSEs to buy back shares from market Department of Investment and Public Asset Management, or DIPAM, releases guidelines on capital restructuring, in a move to help the govt achieve its disinvestment target Efforts to link bank accounts with Aadhaar gather steam The government’s efforts are primarily geared towards fixing leaks in the direct benefit transfer schemes and ensure people got the funds in a secure manner Hiring at start-ups: Consumer Internet’s loss is enterprise’s gain At most business-to-business start-ups, cash burn is low, or negative, and their businesses more predictable Sebi eases redemption norms for mutual fund investors As per the new Sebi rules, no redemption requests of up to Rs2 lakh will be subject to restrictions; beyond that, the remaining money can be subject to any restriction imposed by an AMC Investors from Japan, Russia, China, US and EU in talks with venture funds for co-investing in India Among the newly interested investors are venture funds, private equity funds and fund-of-funds that are scouting for mid to late-stage deals, including in non-technology ventures. L T Finance eyes consolidation in bid to improve returns L&T Finance is scouting for a minority partner to pick up a 26% stake in its MF business BSE IPO will give its shareholders liquidity, but also poor returns The forthcoming initial public offering (IPO) highlights the fact that BSE has turned out to be a poor investment Fiscal deficit bang on target, India a bright spot: Finance Ministry The secretary further said the Plan expenditure at Rs 4.71 lakh crore in 2015-16 was higher than Budget estimate of Rs 4.65 lakh crore. IRDAI warns Sahara India Life Insurance on non-compliance IRDAI has warned Sahara India Life Insurance Co for non-compliance of 'Expenses of Management' (EoM) norms, and asked it to bring the expenditure levels within the limits by 2016-17-end. Jubilant Life gets shareholders nod to raise up to Rs 1,340 crore The company was seeking shareholders nod through ballot as it intends to issue Indian and/or Foreign Securities for an amount not more than $200 million. Banks widen complaint redressal system Internal ombudsman at the bank level gives customers another forum, but efficacy remains to be seen Time to get the governance of pension plans right Though India has one of the youngest populations in the world, by 2050 we are projected to have amongst the largest number of people in old age Glenmark to raise up to $200 million via FCCB issue The regulatory floor price for conversion of the FCCBs shall be ` 861.84, Glenmark says RBI allows Axis Bank to raise foreign shareholding to 62 pc from 49 pc One of the leading private lenders, Axis Bank started operations in 1994 and has been promoted by institutions such as UTI, LIC, GIC and its subsidiaries. Govt planning fund to invest in distressed assets of banks: Jayant Sinha Stressed asset fund said to be led by State Bank of India and is likely to be set up in partnership with a global fund As NPAs soar, Jayant Sinha wants RBI to regularly conduct asset quality reviews Jayant Sinha said RBI did a "detailed investigation of system-wide stressed assets" and the government has been working very closely with the central bank on it. Inability to raise capital will hurt PSB market share: Fitch In a note titled ‘India Bank Credit Profiles at Risk Under Heavy Losses Fitch said public sector banks balance sheets could become unstable if they cannot raise more capital. Reliance sells its entire 72% stake in Gulf Africa Petroleum to Total Reliance Industries says net proceeds for the sale will be finalised on completion of the transaction, which is expected in a few months As China slows down, India can be a very powerful driver: FM Jaitley Speaking at 'The Future of Asia' Conference organised by Nikkei Inc, he said China shouldered almost 50 per cent of global growth over the last few years. Banks seeing spurt in NPAs due to lower debt servicing ability of firms The proportion of companies who aren’t able to pay back loans to banks is increasing World Bank to change classification of countries; India will now be called 'lower-middle income' With economies becoming less and less homogeneous, World Bank will group countries based on geographical coverage and income levels. Govt rejects Apple's plea for exemption from local sourcing; seeks more info from LeEco This lack of a clear definition has the government concerned about the element of discretion being used by officials in deciding which company qualifies as ‘cutting-edge. 'Dairy sector needs more cold chain facilities' June 1 is observed as ‘World Milk Day’. Rajiv Mitra, Managing Director, Govind Milk, speaks on the importance of the day with respect to Indian milk industry.Why do we have a ‘Milk Day’?How do you see consumption Reynolds makes way for Rorito in pens GM Pens, best known as Reynolds' former India licensee, hopes to ride the stationery wave with Rorito. Will the strategy work? Blueair announces leadership changes for West and South Asia Blueair has announced a new structure and leadership for the west and south Asia region, encompassing India, Bangladesh, Sri Lanka and the Middle East by appointing Girish Bapat as the region's sales director. Flipkart introduces India's first 'No Cost EMI' option for online buyers The Tech Portal Flipkart introduces India's first 'No Cost EMI' option for online buyersThe Tech PortalIn a bid to better the overall customer experience on its platform. Flipkart has today introduced a simple and easy financing option for its online buyers -- 'No Cost EMI'. Under this option, customers can buy high-cost products on Flipkart through EMI ... articles  Apple plant in India to benefit retail sector: Google official Nitin Bawankule "Now, whether it will impact online or offline it doesn't matter, I think, but if Apple decides to set up one such plant, it's great for the industry," he said. Xiaomi doesn't want waiver of norms for retail outlets; its Make in India to involve 30% local sourcing Chinese smartphone maker Xiaomi, which had earlier sought an exemption from the mandatory 30% local sourcing norms to set up its own retail outlets in India, has now said it doesn’t need the waiver any more, department of industrial policy and promotion (DIPP) secretary Ramesh Abhishek said on Monday. Amazon India charges sellers more; hikes 'referral rates' by up to 9% The US giant increased the ‘referral rates, or commission on various categories of products, on almost every product last month. Vodafone India to file for IPO by September Vodafone India’s initial share sale will likely raise Rs15,000-18,000 crore India's GDP could be $1 trillion more by 2020 if all citizens go online The report, titled "Connecting the world: Ten mechanisms for global inclusion", is based on a study done by PricewaterhouseCoopers for Facebook. Call drops: COAI says telcos are not using RLT tech to cheat customers Industry body COAI today rejected allegation of "inappropriately" using the Radio Link Timeout (RLT) technology for masking call drops. It is used globally by all operators to ensure optimal customer experience. Mobile ad blocking rose 90 percent last year, report says 122 million users in India were actively using mobile browsers with built-in ad blocking, as of March 2016, suggests a study conducted by PageFair. India stands second among the 17 countries identified by the study. India was second to China, which had 159 million monthly active users with a bui Indian telecom sector clocking single digit growth due to high digital illiteracy rates : COAI According to the industry body, 90% of Indians remain digitally illiterate, which is also a big reason for the telecom industry's declining revenues. Won't set up stores in India if 30 per cent sourcing rule stays: Apple The 30% sourcing commitment is stipulated under rules for foreign investment in single-brand retail. Apple had applied for an exclusion but this was denied by FIPB. Jabong's revenue up 14% at Rs 243.78 crore for Q1 of 2016 Rival of Myntra, Voonik and Koovs, is now planning to shed several low-margin brands, including three-fourth of its private labels, in a bid to cut losses. India to have 175 m online shoppers by 2020 Report by Google and AT Kearney says the number is estimated to grow 3.5 times HDFC Bank to double spends on its Smart Buy to Rs 1000 cr in FY17 Launched last year, SmartBuy is a marketplace that has tied-up with various merchants; bank's debit or credit card customers can shop via this platform Warehousing demand of e-commerce companies jumps to 22 per cent in 2015 Office space demand from e-commerce firms witnessed a 170 percent year-on-year growth, from 0.7 million sq. ft. in 2014 to 2 million sq. ft. in 2015, the report further said. Nextbit Robin pre-orders exhausted on Flipkart before sale The company has run out of units of Nextbit Robin, and will be available on Flipkart within a week. 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